Sudan USSD launch sparks debate over shadow economy
March 22, 2026 (KHARTOUM) – Sudan’s launch of mobile financial services via USSD technology has sparked debate among experts over whether the move can dismantle the country’s dominant shadow economy against the backdrop of war-torn infrastructure.
The Ministry of Telecommunications and Digital Transformation said the service, which operates on basic 2G networks and does not require internet access, aims to boost financial inclusion in remote areas.
Officials announced the initiative last week as part of a joint strategy with the Central Bank of Sudan and the national telecommunications regulator. The plan seeks to expand low-cost digital channels and provide financial access during network outages or high-traffic periods.
The first phase of the rollout enables basic transactions, including person-to-person transfers and balance inquiries, using short codes such as *123#.
While some experts view the technology as a vital tool for the unbanked, others warn that technical unreadiness and a lack of infrastructure could hinder implementation.
Haitham Mohamed Said, a former technology director at Al-Tadamon Bank, said Unstructured Supplementary Service Data (USSD) creates a direct session between a mobile handset and the GSM network operator.
Said told Sudan Tribune that the service is superior to mobile apps under current conditions because it runs on “feature phones” and offers high security without requiring data.
Unlike standard text messages that are stored before being sent, USSD creates a real-time connection with a response time of only a few seconds, Said added.
However, he warned that Sudan’s ongoing conflict has severely damaged telecommunications networks and power grids, potentially leading to service instability.
Digital transformation expert Mohamed al-Khair said the project’s success depends on full integration across all domestic telecom networks. He noted that previous mobile money attempts in Sudan, such as Hassa and MTN Cash, failed largely due to limited reach and a lack of cross-platform cooperation.
Al-Khair said the government must improve network quality and ensure that “USSD Gateways” are managed efficiently to avoid the pitfalls of previous digital finance experiments.
Economic analyst Abdul Azim al-Mahal said the service could represent a significant shift if it successfully migrates cash into the formal banking system.
Mahal told Sudan Tribune that bringing transactions into the regulated sector could shrink Sudan’s shadow economy, which is estimated to account for roughly 65 per cent of all economic activity.
He urged the government to keep transaction fees low, arguing that the long-term benefits of broadening the tax and banking base outweigh the immediate revenue from service charges.
USSD technology gained global prominence through Kenya’s M-Pesa platform, launched in 2007. Sudanese authorities hope a similar model can now help stabilize the financial sector by capturing the massive liquidity currently circulating outside of banks.